James McDonald Tesla Inc TSLA-Q BUY Mar 09, 2021

As a car company, never made sense to pay the demanding multiple. So an investor has to put faith in the technology side, and he's not comfortable with that. Musk is in the news big time, and he's not gaining any friends. International blowback against TSLA and Musk, reputational risk. Sales numbers weak.

The stock is down 40%, but at 50% that's when it hits bottom and that's when you enter. So wait.

On the chart it's a buy. But price to growth is unhinged. Don't buy this one.

He drives a Tesla. Musk stepping away from Washington is likely a good thing, but the stock trades at a ridiculous 150x PE. Bulls will argue that robo-taxis are coming, but we're not there yet for self-driving cars (he tried it himself).

He reduced his position given macro risk, though the company has done a fine job navigating tariffs. He believes in their self-driving technology, which will be one of the biggest transition in coming years. As for the Musk boycott and falling Tesla sales around the world: Musk has always been controversial, and he says he's returning to Tesla full time. 

Down, and Musk has been slamming his own brand. In fact, he should probably leave the company; Board has been debating this.

He believes in their self-driving cars. He expects Trump to allow these cars on the interstate.

Trading at extremely high valuation. Cult stock. Can't really value it on today's earnings. Have to hope the battery technology takes off and that robotaxis becomes a huge thing. Lots of irons in the fire. If you believe the Musk-hype, this is a must-own.

For the rest of us, who can't cope with the valuation, very hard to buy. Sometimes the growth comes and it works out, and then you wonder why you didn't pay 800x PE ;)

He's liked the company for ages for its EV's, self-driving cars and robots, which show promise, but he could never pull the trigger. However, last night, as the feud exploded, he changed is mind. Tesla and all its businesses changed the moment Musk broke with Trump. Musk got personal and incendiary towards Trump. Trump is vindictive. Musk should not have picked a fight with Trump, despite Musk spending $250 million getting Trump elected. Musk's various businesses dovetail with Washington. If anything goes wrong with Tesla's self-driving cars, he can see Trump banning them. Trump could ban robots, too. So, that leaves the EV's, and that alone makes Tesla over-valued. Tesla cars aren't selling well, and Washington will stop subsidizing them. Musk is a brilliant businessman, but a self-destructive political operator--he's become toxic, and Tesla stock has become too hard to own.

This has been downgraded, including two today, but he doesn't think Musk is done--he has another act coming, namely the robo-taxis. Don't bet against Musk.